Jim Cramer: There Are Too Many Software as a Service Companies

He believes that there needs to be consolidation in both the cybersecurity and Software as a Service (SaaS) sectors.

"Salesforce
(CRM) - Get Report last quarter was very good. By the way, the ServiceNow
(NOW) - Get Report quarter wasn't bad...Splunk
(SPLK) - Get Report had a very good quarter. Workday
(WDAY) - Get Report said some things that were negative, and that really accelerated the downturn. I think that this group is one that trades together like in 2000, but it's much better. And those had no earnings and many of them were corrupt. These are all good companies. You need to see Okta
(OKTA) - Get Report bottom. You need to see CrowdStrike
(CRWD) - Get Report bottom, you need to see ZScaler
(ZS) - Get Report bottom. You need to see the cybersecurity stocks, in general, bottom. There's too many of those. There's too many software as a service companies. You need to see a bit of a shakeout, maybe some mergers, and then you can get a bottom. But in 2000, the bottom took a long time," said Jim Cramer.